Earlier this month I wrote about Spain drastically cutting solar subsidies. Now, because of the Greek economic crisis, Germany has reduced new solar plant subsidies by 16 percent. In June, Italy will likely cut support for new plants by 25 percent. Because of the uncertainties over solar subsidies, it is harder for companies to secure funding for alternative energy projects.

There are very few wind or solar installations that can be profitable without subsidies. Projects that rely on government for funding welfare can expect the lights to go out on the money when budgets are strained.

In most cases it is best to allow alternative energy to proceed on merit. A simple concept but so hard for politicians to grasp.